S.5- The Devil’s in the Details

The UN-Affordable Heat Act

S.5- The Devil is in the Details

Wait- what details?- I have never been a fan of cliches but every now and then they are perfectly appropriate. No one is talking about the details of S.5-the UN-Affordable Heat Act. Any attempt is thwarted because it instantly reveals the unethical, highly detrimental, and unrealistic goals and costs. Forget throwing carrots or sticks- this is a bomb that sacrifices and further burdens small businesses, Vermonters and our economy.

Most of the time when I speak with a legislator at the statehouse who is currently supporting the UN-Affordable Heat Act- I hear buzzwords- enough buzzwords to be drunk on the floor- trust, equitable, guardrails, resilience, just energy transition, affordable, energy independence. My questions are:- What guardrails, Trust who? Equitable how? Who's paying? The misconceptions and lack of details are actually appalling.

It reminds me of that horrible joke- How many _______ does it take to screw in a light bulb? How many people, organizations and evidence will it take for the legislators to amend a harmful bill or better yet kill it? Is it possible for ideological diehards to walk away from a toxic bill- so much money and time spent- will they choose Vermont or will we be sacrificed?

On February 14th, Ben Edgerly Walsh, VPIRG's Climate and Energy Director sent out an email blast to Support the UN- Affordable Heat Act. Walsh stated, “This bill will finally require the fossil fuel industry to help fund the transition to cleaner, more climate-friendly heating solutions in an affordable, equitable way for Vermonters.”

This gross misunderstanding also permeates the statehouse. Representative Campbell wrote in a recent Caledonian Record article- “The only 'obligated parties' are the fossil fuel distributors, who until now have not been required to take responsibility for the climate altering effects of what they sell.”

These statements are false in that they do not account for the fact that the majority of the 150 or so small, local fuel dealers in our state ARE THE DISTRIBUTORS. Senator Bray is correct when he says the company that crosses the border owns the title and thus is the “obligated party” but he never mentions that 80% of the small, locally owned, family fuel dealers cross state lines to pick up fuel.  This effectively makes them the 'obligated party'- now responsible for paying for this 'just transition'. These local businesses cannot and should not carry this burden, they will have to pass it to their customers- Vermonters cannot and should not carry this burden either- we're already struggling to pay basic expenses.

Many think S.5 is sticking it to Big Oil and Big Oil is paying for this 'just transition'. This is how it is sold. In reality- proponents of S.5 are sticking it to their neighbors, friends, family, and local businesses. These small, local fuel dealers provide jobs, heat, payment plans for those struggling, and often the sports uniforms, playing fields and multiple other donations that make a difference in our communities. S.5- The UN-Affordable Heat Act is exactly how you destroy an economy and a community- this is a detail- a really important detail

Let's look closer-

There are only two propane and three heating oil wholesale terminals in the state. Most fuel dealers, especially in rural areas, buy directly from several out of state wholesalers. Relying on only one means price gouging and a monopoly. With access to options, there is competitive pricing and local fuel dealers can get the best prices for their customers.

Continuing to engage in this practice would make small fuel dealers the 'obligated party' now responsible for purchasing or creating meaningless carbon credits to offset their fossil fuel sales which are necessary for their customers who need reliable heat.  One cannot solely rely on heat pumps – these are supplemental systems unless you are wealthy and can consider a full-on multiple heat pump install and depending on temperatures this often doesn't work without backup. It also creates full dependence on the grid for heat which for most is a No-Go.

The largest fossil fuel sellers and utilities in VT support S.5 because in the world of bogus carbon credit trading they can weather the financial storm that this legislation brings and will actually benefit from playing the carbon market. Small fuel dealers will now be forced to decide if they need to stop the practice of price shopping and be bound to one of the few state terminals in order to avoid becoming an 'obligated party'. Regardless- the price increase is real and will be passed to customers.

S.5 does exactly the opposite of what it promises– it promotes big business including Big Oil, creates monopolies, feeds the highly profitable, carbon trading market and sacrifices people and VT businesses on the altar of ideology and bogus environmental justice. Most of these small fuel dealers have already been working for decades to install heat pumps and efficient systems that reduce fossil fuel consumption, and promote weatherization plans and renewable options. S.5 and its proponents now want to make everyone pay- literally and figuratively - that is the bottom line and it will undoubtedly bring destruction. We must demand the details and see this for what it really is- a gut punch to Vermont.